Trading-Mentality

Volatility died down over the past week due to the US Thanksgiving holiday. While there were movements, my overall observation of the price action was choppy.

This post will cover the past two weeks. While I did not get a chance to draft last week’s post, I did have a couple of notable trades. The past week was a bit rougher since the breakout signals did not yield desired results.

November started slow. There was a lack of US economic data releases due to the government shutdown. The release of October’s non-farm payroll numbers was planned for November 7th, but that did not happen. As a result, we did not see any choppy movements on Friday. That being said, my trade entries and management were consistent over the past week. I did not force any trades, and the signals were strong for the trades that I did enter.

The past week has been uneventful. I over-traded by entering trades based on price’s reaction away from EMAs rather than observing a confluence of price behaviors supporting the trend on the higher timeframe. I’ll need to reset, re-focus, and be very conscious of this in the future. 

The past week was probably one of the best weeks for me for quite some time. I felt like I finally got my groove back with consistent entries and trading the signals as they appeared. To keep emotions out of the equation, my exits were systematic through the use of trailing stop losses.

Price action over the past week was not the greatest. While I didn’t notice any strong signals nor did I make any major plays, I think there’s an opportunity here to talk about how I can go about optimizing this trend trading strategy.

Focusing on one trade at a time continues to pay off. This was observable over the past week, where I was able to control my FOMO by not taking on additional trades if I'm already in one.